BITCOIN PRICE DROPS FURTHER AS CIRCLE CEO SAYS ‘CORE’ CRYPTO ASSETS ‘UNDERVALUED’

Circle CEO Jeremy Allaire has said he believes “core” cryptocurrency assets are undervalued as the Bitcoin price tumbles closer to $3500.

ALLAIRE: ‘MARKETS ARE OVERSOLD’

In a Reddit ‘Ask Me Anything’ session January 10, Allaire, whose company famously decoupled itself from Bitcoin in 2016, also forecast less correlated trading in altcoin markets.

Circle founder and CEO Jeremy Allaire - Bitcoinist.net

“My general perception is that the markets have been oversold and that some core assets have decoupled from their usage, which suggests they are undervalued,” he wrote.

…We also believe that many assets have traded in a tight correlation to BTC, which is irrational. As the markets mature, we expect less correlated trading as investors better understand the value, utility and adoption of specific crypto assets and networks.

Bitcoin price $3690.44 -0.1% had taken two knocks downward Thursday, falling from $4050 to current levels under $3700.

2019: HIGHS OR LOWS FOR BITCOIN PRICE?

Opinions on the future for the largest cryptocurrency are mixed, with some well-known figures predicting lower lows in 2019 and others conversely anticipating new all-time highs.

This week, Civic CEO Vinny Lingham joined the first camp, telling Cheddar that BTC/USD was in for “one or two months” of sideways trading before making either an upwards or downwards move. The former, he warned, could see the pair drop below $3000.

As Bitcoinist previously reported meanwhile, trading guru Tone Vays has warned the Bitcoin price could challenge just $1000.

At the same time, Japanese exchange Quoine CEO Mike Kayamori told mainstream media he believes new all-time highs for Bitcoin will come “by the end of this year.”

For Allaire, optimism stems from the technical prowess of the Bitcoin network.

“We look at things like hashrate health, on-chain activity, as key indicators of usage and adoption and underlying unit economic support,” he said.

Circle’s new-found optimism on Bitcoin did not go unnoticed among commentators, who contrasted it with the company’s pivot away two years ago.

 


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Author: ESTHER KIM 
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Circle’s OTC Crypto Trading Desk Saw $24 Billion in Volume in 2018

Crypto heavyweight Circle stated in a blog post that their OTC (Over-the-counter) business has facilitated over $24 Billion worth of trades. This is a huge number given that OTC trading volumes are not reported publicly and there have been growing discussions about institutional investor activity over crypto OTC desks.

Circle Trade has become a core liquidity provider to the entire crypto ecosystem

Circle claimed that over 600 counter parties executed over 10,000 trades over 2018. These trades spanned over 36 assets, and primary consumers of the desk include miners, founders, hedge funds, proprietary trading firms, crypto funds, and VC’s.

Circle Trade, has continued to expand despite a tumultuous year for the industry: we onboarded a record number of new institutional clients, grew our trading operations to 24/7 with coverage in the US, Europe and Asia

Having experienced significant growth over several product offerings, Circle’s has over a thousand institutional partners from all over the world – United States, Asia, the Middle East and Europe. This growth is complemented by an increased headcount – over 150 new hires.

Poloniex Acquisition

Poloniex, Circle’s cryptocurrency exchange.

Apart from the OTC desk, Circle acquired Poloniex in early 2018, one of the earliest crypto exchanges (which has been operational for nearly five years). Subsequently, Poloniex underwent a series of upgrades from a regulatory and engineering perspective. This included revamping the customer signup and identity verification process.

In line with top exchanges in the industry adding new cryptoassets, Poloniex added several tokens over 2018 – EOS, BAT, SNT, KNC, LOOM, FOAM, MANA, BNT and USDC.

While several assets were added onto the platform, a whopping 20 assets were delisted from Poloniex. Moreover, the number of open customer support tickets were reduced from over 200,000 to 1000 during 2018.

Apart from this, Circle introduced the Circle Asset Framework which provides guidelines and a clear framework for reviewing assets introduced within Circle’s products.

Another notable feature implemented by Circle was the pre-fork trading enabled in anticipation of the Bitcoin Cash Fork. Apart from this, fiat markets with the base pair of USDC were launched.

Circle Invest

Launched during the Spring of 2018, Circle Invest serves as a frictionless means of investing in crypto without the hiccups. Having launched one collection of crypto assets – ‘The Market’, three more collections were launched given the growing demand.

Despite the highly volatile crypto market, over 30% of purchases on Circle Invest are recurring.

And a Broker Dealer Acquisition

Circle also acquired SeedInvest, which owns a registered broker-dealer and is the largest equity crowdfunding platform in the United States.

The acquisition, although pending regulatory approval, reflects Circle’s ambitions.

We believe more traditional assets will become securitized through tokenization, and that includes shares in companies, debt and other lending contracts, and other forms of property and value.


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Author: Alex T
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Crypto Exchange Poloniex Launches Institutional Trading Services

Crypto exchange Poloniex has announced the opening of trading services for institutional clients.

The company, which was acquired by payments firm Circle earlier this year, said Tuesday that it will begin offering institutional accounts, with support for different crypto trading pairs and API interfaces. The exchange will also provide no-fee transactions for all bitcoin/USD Coin trades in December.

As part of its new accounts, Circle is offering over-the-counter trading through Circle Trade, services through Poloniex and trading pairs with the USDC stablecoin, according to a registration page. Firms looking to participate in OTC trading must issue a minimum order size of $250,000.

In its announcement, Circle explained that it would offer institutional clients higher withdrawal limits, as well as “professional customer support.”

“Our highly trained team will guide each institutional customer through the onboarding process, coordinate issue resolution across multiple teams and support ongoing trading activities,” the firm explained

Circle and Poloniex join industry exchanges like Coinbase in offering services specifically for institutional traders. The latter exchange, which also offers USDC trading pairs, began rolling out custody services for its institutional clients in May.

More recently, Coinbase has also begun trialing an OTC trading desk, though the platform will not go live until early next year.


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Author: Nikhilesh De
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Bye-bye USD Tether? Circle Partners with Bitmain to Issue USD Coin

Circle is a company that has seriously focused on the growth and expansion of its services in the recent months. Ever since the announcement of the acquisition of Poloniex —one of the oldest and most recognized exchanges in the crypto sphere— the company’s renewal efforts have been extremely beneficial both to the corporation and to the ecosystem as a whole.

In an official press release, Circle revealed the release of USD Coin, a stablecoin backed by real FIAT currency (in this case US Dollars) that would be used on a daily basis in Poloniex, to begin with. This way users will be able to freeze their money with a currency that would not be theoretically subject to inflation or speculation.

Breaking Tether Hacked for 30 Million
Related News: Ethereum Network Tokenized U.S. Dollars Trade made Possible by Tether

Poloniex used to list USDT as a stablecoin in the past, but the development of its own crypto seems to be an appropriate decision after the scandals that put into question the feasibility of USDT as a genuinely dollar-backed token.

The use of tokenized US Dollars permits the creation of less volatile trading pairs, an option that many users will appreciate as it would imply less exposure to the risk of a sudden change in the value of a defined crypto. According to Circle, two characteristics that make USDC a better option over other stablecoins are the fact that USDC is an ERC20 token and also that they as the issuer comply with national banking standars when it comes to information publishing policies:

Existing fiat-backed approaches have lacked financial and operational transparency, have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies.
Circle USDC addresses these problems by providing detailed financial and operational transparency, operating within the regulated framework of US money transmission laws, and reinforced by established banking partners and auditors. It is built on an open source framework with an open membership scheme that eligible Financial Institutions (FI) can participate in (CENTRE). USDC will be ERC-20 tokens minted, issued, and redeemed based on network rules defined by CENTRE.

Circle Announce a Strategic Partnership with Bitmain

Another important announcement was the commercial alliance with Bitmain, the largest ASIC manufacturer in the market and responsible for one of the largest mining pools in the world.



 

Bitmain is investing $110M in the development of the CENTRE platform and its USDC project as well as series E strategic investment in Circle. An initiative that other companies like IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, and Pantera, along with new investors Blockchain Capital and Tusk Ventures are also joining.

According to the company, the business vision of Jihan Wu, Bitmain’s CEO, is very similar to the expansionist interests of Circle, so they expect the market positioning of the famous Fintech becomes ever more significant:

Bitmain is one of the most important and forward-thinking companies in crypto and has become a critical infrastructure provider for the entire crypto economy. Bitmain Co-founder and CEO Jihan Wu is well known for espousing a vision similar to ours regarding the creation and adoption of a new global economy powered by cryptographic assets, distributed contracts, and open source blockchain technology. We are excited to be working directly with Bitmain on realizing our shared vision.
Bitmain will also join CENTRE’s efforts to introduce multiple fiat-backed stablecoins and provide financial interoperability around the world. This partnership will help drive global interoperability that benefits consumers, business ventures, institutions, and marketplaces everywhere. Specifically, Bitmain will help CENTRE introduce multiple fiat stablecoins in a variety of geo-currency zones.

Jihan Wu at the DC Blockchain Summit. Credit: Coindesk
Bitmain’s CEO Jihan Wuat the DC Blockchain Summit. Credit: Coindesk

Previously, at the DC Blockchain Summit 2018, Jihan Wu had mentioned that he wanted to venture into the financing of “Central Banks” projects for cryptocurrencies around the world. This news generated a lot of controversy about the dangers of centralization that this strategy would represent vs. the ease that it would imply for traditional users.

For Circle, the race is just beginning. They state that their five years of age are just the beginning of a series of successes, claiming that they are “thrilled for what’s to come.


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